Murray Goulburn skims 200mn litres off 2017/18 production forecast

By Addie Thomes

Australian dairy-producing giant Murray Goulburn (MG) has downgraded its production output for this season by 200mn litres.

With suppliers switching to other milk processors, it is shaping up to be a difficult year for MG, as production levels continue to slump.

The company expects to produce 2.5bn litres in the 2017/18 season, a billion less than what it churned out in 2015/16 which equates to a decline of more than a third. MG’s record year, 2014/15, saw it produce 3.6bn litres.


Along with revised production figures, MG also revealed the sale of local brand Kiewa Country, which sources and produces milk products from its facility in Tangambalanga in north-eastern Victoria.

Despite the fall in output, MG is saying that its opening price of $5.20 per kilogram of milk solids has not been affected, citing cost efficiencies and improvements in the way business is conducted as mitigating factors.

MG’s final price range is also unaffected, with the company maintaining its selling position of $5.20-$5.50. However, the strength of the Australian dollar could force an upwards movement, especially if it continues to perform well against the US dollar.  


Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia


Huawei smartwatch goes for gold with Ultimate Edition


How IKEA India plans to double business, triple headcount

Corporate Finance